- Go to the Input Return tab.
- On the left-side menu, select Credits.
- Click on Foreign Tax Credit (1116).
- Select the country from the Name of foreign country drop-down list.
- Select the Category of income from the drop-down menu.
- On the left-side menu, select Income.
- Click on Dividend Income (1099-DIV).
- Enter the Name of Payer.
- Enter the dividend income in Total Ordinary Dividends.
- Enter any qualified dividends in Qualified dividends.
- Enter any capital gains in Capital Gain Distributions.
- Click the Details button on the right side of your screen to expand the input area.
- Scroll down to the Foreign Tax Credit section and complete the information there:
- Select the Name of foreign country (must be the same as selected in step 4).
- Select the Category of income (must be the same as selected in step 5).
- Enter the Percentage foreign (.xxxx) or amount, if different if applicable.
- Enter the Foreign income tax withheld (U.S. dollars).
- Check the box Foreign taxes accrued if applicable.
- Enter the Date paid or accrued.
Note: For ProConnect Tax Online to calculate the Credit for Foreign taxes paid, an entry under U.S. Dollars must be made. Entries under the Foreign Currency section will not generate a credit. ProConnect Tax Online cannot convert foreign currency amounts to U.S. dollars, so any currency conversion must be done outside of the program.
You can find this by going to the Help Portal and typing Foreign Tax Paid in the search bar and then selecting Generating Form 1116 Foreign Tax Credit for an Individual Return and then selecting Dividend income under type of income.
If you go to General Information and Elections, you can elect not to file Form 1116.